Comcast is preparing to spin off its NBCUniversal cable television division, a decision driven by the ongoing challenges posed by streaming platforms like Netflix and Amazon Prime. The company is expected to announce this move on Wednesday, which aims to establish a new entity that will encompass well-known channels such as MSNBC, CNBC, USA, E!, Syfy, and the Golf Channel.
Despite the wave of cancellations impacting cable TV subscriptions, these networks continue to generate significant revenue, amassing a combined total of $7 billion (£5.5 billion) for the year ending September. Comcast will retain ownership of the NBC broadcast television network, its film and television studios, theme parks, and the Peacock streaming service.
Executives at Comcast anticipate that this spinoff will be completed within approximately a year and believe it will position the company for enhanced growth moving forward. Mark Lazarus, currently the chairman of NBCUniversal's media group, is slated to become the chief executive of the new company.
Since Comcast's acquisition of NBCUniversal in 2011, the media landscape has dramatically shifted, with cable networks once regarded as prime assets now facing a growing tide of viewer attrition towards streaming options. Comcast stands out as the first major media corporation to pursue such a strategy, following earlier decisions by Warner Bros and Paramount Global to reduce the valuation of their cable networks. Meanwhile, Walt Disney contemplated a similar approach only to ultimately abandon it.
